Subject: The coming currency debacle. (It seems to me that worse fear we have to face is the collapse of overly indebted currencies of developed markets).
Dr Steve Sjuggerud at S&A, recently suggested the following Deutsche Bank Currency Returns UCITS ETF, symbol (XCRD.L). – In his article he supplied a graphic (from 1991 to 2013) comparing S&P 500 vs DBCR Currency Index. The currency system has gone straight up while stocks swing violently. – In a few words, the ETF is long in the three strongest currencies and shorts in the three weakest one. The positions are regularly changed to fit the prevailing circumstances. – I wish to have the opinions of other members on this matter.
A tidbit on limited currency hedging …. Just for fun I compared the chart of XCRD.L to that of HEDJ (Wisdom Tree Hedged Equity). At Yahoo Finance you can read the profile of HEDJ. It looks quite interesting to me, but other than the charts and profile info – I have not looked any further into these funds.